Local suppliers get preference in procurement of COVID-19 kits

MANILA, Philippines — The Procurement Service of the Department of Budget and Management (PS-DBM) is now giving preference to domestic companies in the purchase of medical equipment and supplies to support local enterprises amid the pandemic.

In an advisory, the PS-DBM said it is implementing a “domestic preference” policy in the procurement of COVID-19-related goods in accordance with the Bayanihan to Recover as One Act.

The agency said this is in line with the government’s efforts to mitigate the effects of the COVID-19 pandemic on the Philippine economy, by stimulating business activities and providing livelihood to Filipinos.

However, to benefit from this procurement policy, the PS-DBM emphasized that local manufacturers and suppliers need to apply for a domestic bidders (DoBid) certificate of preference from the Department of Trade and Industry’s Competitiveness Bureau (DTI-CB).

“PS-DBM would like to reiterate that suppliers and manufacturers who wish to benefit from domestic preference must secure a Domestic Bidders (DoBid) Preference Certification.”

The DoBid certificate guarantees that the items being offered are “substantially composed of articles, materials, or supplies that are grown, produced, or manufactured in the Philippines.”

Based on the PS-DBM data, there are only four companies who have secured DoBid certifications from the DTI-CB as of Oct. 7.

The agency said there are still 354 domestic suppliers and manufacturers with no DoBid certifications that could participate in the procurement of personal protective equipment (PPE), testing kits and other medical supplies.

Of the total, 299 are registered with the Philippine Government Electronic Procurement System (PhilGEPS), with businesses in testing instruments; medical apparel; personal safety and protection; paper products; solvents; cleaning and janitorial supplies; as well as plastic and chemical industries.

Forty-four of them had also participated in PS-DBM’s previous procurement activities for COVID-19 response goods.

The PS-DBM said 26 local companies have officially expressed intent to bid during the implementation of Bayanihan 2 law from Sept. 11 to Dec. 19, 2020.

Under Section 4(u) of the Bayanihan 2 law, the government, as a procuring entity, should award contracts to local companies with DoBid certificates that submitted the lowest bid among domestic suppliers.

The PS-DBM is likewise allowed to award a contract to the local supplier even if its bid is higher than the lowest foreign bidder.

“When the bid submitted by the lowest domestic bidder with DoBid is not more than 15 percent in excess of the lowest foreign bid, domestic preference is applied and the contract is awarded to the domestic bidder,” PS-DBM said.

The PS-DBM has assured the public that it is “one with all industries and sectors in supporting local labor and products while ensuring the well-being of the Filipinos.”

“With this, PS-DBM encourages all interested bidders to apply for a DoBid today and join our fight against the COVID-19 pandemic,” it said.